EUROPEAN SCHOLARSHIPS DROP AT THE BEGINNING OF THE SESSION
by Laetitia Volga
PARIS (Reuters) – Major European stock markets retreat sharply on Friday, as UK decision to establish a “fortnight” for all travelers from France and the Netherlands and poor Chinese economic indicators rekindle fears on the pace of economic recovery.
France, where the evolution of the epidemic is worsening, said it regrets the British choice and will adopt a similar measure in the name of the rule of reciprocity.
These announcements penalize groups linked to leisure and transport, already severely affected by the pandemic.
In Paris, the CAC 40 index fell 2.02% to 4,940.6 points around 08:25 GMT. In Frankfurt, the Dax dropped 1.25% and in London, the FTSE dropped 1.93%.
The EuroStoxx 50 index for the euro zone lost 1.72%, the FTSEurofirst 300 fell 1.49% and the Stoxx 600 fell 1.64%.
At the same time, the economic news from China is disappointing: retail sales there fell 1.1% year on year in July when they were expected to rise 0.1% and industrial production also came out below. expectations, up by 4.8% only while the consensus expected + 5.1%. Figures that highlight the fragility of the rebound in the world’s second-largest economy.
Among the other indicators of the day, we expect the publication at 09:00 GMT of the second estimate of GDP for the entire euro area in the second quarter and then, at 12:30 GMT, the monthly statistics of retail sales in the United States.
The Stoxx index of the transport and leisure sector lost 3.05%, the largest drop in Europe, after the British decision to impose a quarantine on travelers coming from France and the Netherlands.
“This move will result in a large number of cancellations at the height of the summer holiday season for one of the top destinations for UK tourists,” said Neil Wilson at CMC Markets.
At individual values, the Franco-Dutch airline Air France-KLM lost 5.38%. The British Ryanair, British Airways and EasyJet fell from 4.83% to 7.66%. Lufthansa sells 4.12% to Frankfurt.
Tour operator TUI fell 6.01%.
The airport manager ADP gives up 2.30% and Getlink, concessionaire of the Channel Tunnel, 3.99 %%.
Unibail-Rodamco-Westfield shows the biggest drop in the CAC (-3.74%) and the hotel group Accor loose 7.17%.
On the Tokyo Stock Exchange, the Nikkei index ended the day up 0.17%.
After a moment of decline, Chinese markets ended in the green as the poor statistics of the day revived hopes for further stimulus measures. Investors have also already started to focus on the review meeting, scheduled for Saturday, between senior US and Chinese officials on the implementation of the trade agreement “phase one”.
The large-cap CSI300 gained 1.5% and the Shanghai Composte Index 1.2%.
South Korea’s Kospi fell 1.23% as the country posted a daily record for new local cases of coronavirus infections.
A WALL STREET
The New York Stock Exchange ended in scattered order on Thursday, with the S&P 500 (-0.2%) and Dow Jones (-0.29%) indices falling slightly amid disappointing forecasts from Cisco Systems (-11.2% ) while the Nasdaq took 0.27%, driven by Apple. [.NFR]
The apple group, which according to the Bloomberg agency is preparing a bundle bringing together several of its services, such as Apple TV or Apple Music, at a monthly price lower than the sum of the separate subscriptions, gained 1.77% to 460 dollars the action.
The drop in weekly jobless claims, which fell below the million mark for the first time since the start of the health crisis, also limited the bearish stance on Wall Street.
The resurgence of risk aversion pushed the yield on ten-year Treasuries down by more than two basis points, which came back to 0.6931% after reaching the highest level since June 24, at 0.727%, the previous day. response to the relatively weak demand generated by a 30-year auction.
The ten-year German Bund yield was stable at -0.417%.
The variations are limited on the foreign exchange market: the dollar falls by 0.04% against a reference basket and the euro moves around 1.1802 dollars (-0.08%).
Oil prices turned down when the European stock markets opened. The barrel of Brent fell 0.69% to 44.65 dollars and that of US light crude 0.69% to 41.95 dollars.
(Laetitia Volga, edited by Jean-Stéphane Brosse)